Surging demand in Asia has led to a Cambridgeshire optical fibre business doubling production and creating 40 new jobs.

SG Controls has had an influx of new business from China, Japan and India. The company, which is a global leader in the development, design and supply of machines that make optical fibre, is upping production at its site in Newton to cope with orders for its fibre making towers, 45m-high machines which cost up to £2m and can make over two million km of optical fibre a year.

SG Controls systems have proved popular in the Far East

Ian McNulty, managing director at SG Controls, said: “Optical fibre is the backbone of the internet and it was invented in the UK. At the moment, half of the world’s optical fibre is going into China, where they are installing cables across the country. In India, optical fibre is progressively replacing the old telephone wire network. Research and new product development, coupled with this emerging demand overseas has driven our business growth massively.

“Because our projects, often involving the design and supply of multiple towers, take a long time to deliver and utilise considerable volumes of cash until completion, funding growth is particularly challenging. Previously, this limited our capacity to take on new contracts."

McNulty said SG Controls has been exporting its products since 1979 and is working with trade advisers from the Department for International Trade (DIT) and UK Export Finance (UKEF), which is supporting the company to fund its new ventures in the Far East.. He added that 40 new jobs have been created at Newton in the past 18 months.

"Working with the DIT enabled us to find a funding mechanism to satisfy our requirements and those of our customers, as DIT trade advisers work directly with UK Export Finance to provide support to our banks to allow them to issue guarantees to customers," he said.

“Being able to offer these partial guarantees was crucial to us securing new projects and to our overseas growth. If a business as niche as ours can succeed in India and China, then so can other local businesses.”

Alan Pain, Regional Director for DIT East of England, said: “SG Controls is a fantastic example of a British business that is a leader in its field. It has found a ready market for its innovative machinery, which is providing the infrastructure that is connecting the world and helping drive prosperity in emerging markets.

“Our team has worked alongside UKEF to support the business with access to crucial financial tools and introductions to potential new customers, which is all part of our focus to convert more of the region’s companies into successful exporters. Exporting is already a significant driver of growth for the region’s economy and we’re encouraging even more businesses to tap into this opportunity."